China's emergence and the reorganisation of trade flows in Asia

The emergence of China has intensified the international segmentation of production processes within Asia, but has not created an autonomous engine for the region's trade, as Asia still depends on outside markets for its final goods exports. The reorganisation of production has weakened the position of the advanced economies in Asia's trade, but up to now has not severely affected the position of the emerging Asian economies. However, the deterioration of China's terms of trade raises the question of the sustainability of its recent growth strategy.